Rival Japanese airlines to merge

JAPAN Airlines and its smaller rival Japan Air System plan to merge by next September, creating the world's sixth biggest airline. They will fully integrate operations by 2004.

In the largest shake-up in Japan's commercial aviation history, they will form a holding company that is expected to attack the domination of domestic traffic by Japan's second-biggest airline, All Nippon Airways.

Japan Airlines has 172 aircraft, around half of which fly domestically, while JAS has 85 aircraft.